| Question And Answer | |
|---|---|
| Subject: | RETURN FILED 44AD ADDITION 69A |
| Category: | Income-Tax |
| Querist: | RAM BANSAL |
| Answered by: | Law Intern |
| Tags: | Presumptive taxation, Section 44AD, Section 69A |
| Date: | March 26, 2026 |
ADDITION U/S 69A WHILE THE RETURN FILED U/S 44AD VALIDITY OF ADDITION
Generally speaking, addition u/s 69A is not valid when the return is filed u/s 44AD because the presumptive income offered is deemed to cover the profit element. Further addition defeats the scheme.
However, the addition may be valid if the AO brings cogent material to show that the money/deposits are not from business but are from undisclosed sources, gifts, loans without explanation etc.
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